Salem Five Bank Reviews: Checking, Savings, CD, Money Market, and IRA Accounts

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.

Updated on Tuesday, September 1, 2020


Salem Five’s checking account options

Gold Star Checking

This account offers some nice features, but watch out for the high monthly maintenance fee.

APY

Minimum Balance Amount

0.01%

$0.01

  • Minimum opening deposit: $100 if opening online, or $10 if opening at a local branch.
  • Monthly account maintenance fee: $20
  • ATM fee: No charge for in-network or out-of-network ATMs.
  • ATM fee refund: All out-of-network ATM surcharge fees are refunded.
  • Overdraft fee: Free if you set up a linked account or line of credit.

Salem Five’s Gold Star Checking account is its flagship checking account. Unfortunately, it comes with a high monthly maintenance fee, although it is possible to get the fee waived in one of four ways:

  • Keep at least $5,000 in the account
  • Have at least $20,000 in combined balances across all of your Salem Five Bank accounts (including loans)
  • Have a mortgage of at least $500,000 with Salem Five Bank
  • Have an investment account with Salem Five Bank

Some of the nice features that come with this account include free checks, free overdraft protection if you have a linked savings account or line of credit, completely free ATM use (including being reimbursed for ATM surcharge fees), and free identity theft protection for you and up to three other people through InfoArmor.

This account also comes with a cashback rewards program. To use it, all you have to do is select “credit” when paying for a purchase with your debit card, and you’ll earn $0.05 for each purchase made. The cash will be deposited into your account at the end of the statement cycle.

How to get Salem Five’s Gold Star Checking account

To open this account, you’ll need a few things: a scanned copy of your driver’s license, your personal information (such as your social security number), and your previous bank’s information to make the initial deposit.

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on Salem Five’s secure website

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Star Checking

This account comes with fewer perks, but it should be easier to avoid the high monthly fee.

APY

Minimum Balance Amount

0.01%

$0.01

  • Minimum opening deposit: $100 if opening online, or $10 if opening at a local branch.
  • Monthly account maintenance fee: $15
  • ATM fee: No charge for in-network or out-of-network ATMs.
  • ATM fee refund: Up to $15 per month in surcharge fees from out-of-network ATMs.
  • Overdraft fee: $35 per overdraft charge, up to five items per day (but only if each charge is over $5). Alternatively, you can pay $25 per year to set up an overdraft protection plan from a linked savings account or line of credit.

This account is a scaled-back version of Salem Five’s Gold Star Checking account. It comes with a smaller monthly maintenance fee, and it’s a bit easier to get the fee waived through one of these ways:

  • Keep at least $1,500 in your account
  • If you have a combined balance of at least $5,000 across all of your Salem Five accounts (including loans)
  • If you have your paycheck or social security check direct-deposited into the account
  • If you use this account to auto-pay a Salem Five mortgage each month

This account still comes with some decent perks, however. You’ll still get to use Salem Five’s cashback rewards program, although you’ll earn less ($0.005 for each debit card purchase you make, as long as you select “credit” when checking out). You’ll also get a generous amount of ATM surcharge reimbursements, and a few small oddball perks like half off your first order of checks and “preferred rates” on equity loans.

How to get Salem Five’s Star Checking account

You can open a Star Checking account online, through the mail, or by visiting a local branch. Opening an account online is probably the easiest option, and to do this you’ll need a copy of your driver’s license along with your previous bank’s routing information if you want to transfer money over directly.

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Smart Student Checking

This is the free version of Salem Five’s Star Checking account for those under age 24.

APY

Minimum Balance Amount

0.01%

$0.01

  • Minimum opening deposit: $100 if opening online, or $10 if opening at a local branch.
  • Monthly account maintenance fee: None if you sign up for electronic statements. If you opt for paper statements, there’ll be a $2.95 monthly fee.
  • ATM fee: No charge for in-network or out-of-network ATMs.
  • ATM fee refund: Up to $15 per month in surcharge fees from out-of-network ATMs.
  • Overdraft fee: $35 per overdraft charge, up to five items per day (but only if each charge is over $5). Alternatively, you can pay $25 per year to set up an overdraft protection plan from a linked savings account or line of credit.

If you’re a young person looking for a checking account and use ATMs a lot, consider this account. You can use any ATM — whether it’s in-network or not — without paying any Salem Five charges, and you’ll even be reimbursed for some surcharge fees. You’ll have to pay these fees up-front, but you’ll receive a credit at the end of the month for up to $15 in ATM surcharge fees.

Once you hit age 24, however, this account will automatically be converted into a regular Star Checking account. It’s a good idea to mark it on your calendar to revisit the account at this time so you can make sure you’re able to find a way to skirt the monthly maintenance fees that come with that account.

Finally, this account also comes with Salem Five’s cashback rewards program. Each time you use your debit card to make a purchase, select “credit” and you’ll get $0.05 per purchase, deposited into your account at the end of the month.

How to get Salem Five’s Smart Student Checking account

To sign up for this account online, you’ll need a few things such as your personal information (name, social security number, address, etc.) and a scanned copy of your driver’s license. Alternatively, you can mail in an application or visit a local branch to open your account.

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Free Checking

This is Salem Five’s no-frills, no-monthly-fee checking account.
  • Minimum opening deposit: $100 if opening online, or $10 if opening at a local branch.
  • Monthly account maintenance fee: None
  • ATM fee: No charge for in-network ATMs. $2 for out-of-network ATMs.
  • ATM fee refund: None
  • Overdraft fee: $35 per overdraft charge, up to five items per day (but only if each charge is over $5). Alternatively, you can pay $25 per year to set up an overdraft protection plan from a linked savings account or line of credit.

Consider this account if you just want a basic checking account without the hassle of meeting certain requirements each month in order to avoid the monthly fee. There’s no cash back rewards program, no free ATM use or reimbursements, and no other special perks. You also won’t earn any interest with this account. It’s a plain-Jane vanilla checking account.

Because this is the most basic checking account Salem Five offers, it might be tempting to let it go dormant if you’re not using it. But watch out — if your account balance falls below $250 and it’s been at least 12 months since you made any transactions with this account, you’ll pay a $5 monthly “inactivity fee.”

How to get Salem Five’s Free Checking account

You can open this account in one of three ways: online, by mail, or in person. If you choose to open the account online, you’ll need a scanned copy of your driver’s license handy, as well as other personal information like your name, social security number, etc.

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How Salem Five’s checking accounts compare

Unfortunately, we’re rather unimpressed with Salem Five’s checking accounts. All of its accounts except for its Smart Student Checking and Free Checking accounts come with high monthly fees, and while it is possible to avoid them, it’s just one extra hassle that you’ll have to always be mindful of. Furthermore, the interest rates offered on these checking accounts (when offered at all) is paltry.

Instead, if you’re looking for a better no-fee, higher-yielding account, we have a few checking account recommendations here.

Salem Five’s savings account options

Gold Star Saver

This free account for kids and teens doesn’t offer much in the way of interest.

APY

Minimum Balance Amount

0.01%

$0.01

  • Minimum opening deposit: $10
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: None
  • ATM fee: No charge for in-network ATMs. $2 for out-of-network ATMs.
  • ATM fee refund: None
  • Overdraft fee: $35 per overdraft charge, up to five items per day (but only if each charge is over $5). Alternatively, you can pay $25 per year to set up an overdraft protection plan from a linked savings account or line of credit.

If you’re looking for a free savings account to help your child (under age 18) start healthy savings habits, this might be a good account to consider. It doesn’t earn much in the way of interest, but there are some other kid-friendly perks that come with this account and might make up for it.

For example, it takes $10 to open this account. But, once open, Salem Five Bank will match that $10 and give your child a “special free gift” to boot. Once they hit certain savings milestones, they’ll receive additional recognition. Finally, the account also comes with free educational materials for kids, even featuring Red Sox player Dustin Pedroia (although this may be lost on your kid if they’re not a sports fan or live outside of the Boston area, where Salem Five is headquartered).

Once your child turns 18, this account will be converted into a Smart Student Saver bank account.

How to get Salem Five’s Gold Star Saver account

You’ll need to open this account with your child, in a jointly-owned setup (however, your child will be the primary account holder). As for you, Salem Five requires a copy of your driver’s license to open an account. You can open this account online, by mail, or by walking into a local branch.

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Star Savings

This is the companion savings account to Salem Five’s Star Checking account.

APY

Minimum Balance Amount

0.05%

$0.01

  • Minimum opening deposit: $10
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: None
  • ATM fee: No charge for in-network ATMs. $2 for out-of-network ATMs.
  • ATM fee refund: None
  • Overdraft fee: $35 per overdraft charge, up to five items per day (but only if each charge is over $5). Alternatively, you can pay $25 per year to set up an overdraft protection plan from a linked savings account or line of credit.

If you already have the Star Checking account from Salem Five, you’re eligible for this free savings account as well. In fact, if you do hold these two accounts simultaneously, any cash back rewards, ATM surcharge fee reimbursements, and checking account interest will be automatically deposited into this account.

Like all savings accounts, this account comes with a six-transaction limit as per federal Regulation D guidelines (this only applies to pre-authorized, automatic, or telephone transactions, however). If you go over that amount, you’ll pay a $10-per-item fee.

If you ever close your Star Checking account without closing this one along with it, this account will automatically be converted into a Statement Savings account (which carries a monthly fee if you don’t have at least $300 in the account).

How to get Salem Five’s Star Savings account

You can open this account at the same time you open a Star Checking account, or open it later. In any case, you’ll need a copy of your driver’s license and personal information about yourself like your name, address, and social security number.

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Statement Savings

Salem Five’s standalone savings account comes with a monthly fee and doesn’t really offer much.

APY

Minimum Balance Amount

0.01%

$0.01

  • Minimum opening deposit: $100 if opening online, or $10 if opening at a local branch.
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: $3
  • ATM fee: No charge for in-network ATMs. $2 at out-of-network ATMs.
  • ATM fee refund: None
  • Overdraft fee: $35 per overdraft charge, up to five items per day (but only if each charge is over $5). Alternatively, you can pay $25 per year to set up an overdraft protection plan from a linked savings account or line of credit.

If you’re just looking for a basic savings account with Salem Five without the hassle of maintaining a separate checking account, this is the account for you. However, be careful — it comes with a small monthly fee, but you can get the fee waived if you keep a balance of at least $300 in the account.

This account also comes with transaction limitations as per federal Regulation D. You can make up to six pre-authorized, telephone, or automatic transfers per month. After that, you’ll pay a $10-per-item “excess debit fee.”

How to get Salem Five’s Statement Savings account

You can open this account online, by mail, or by visiting a local branch if you live in the greater Boston area. Aside from your personal information such as your name, address, and social security number, you’ll need a copy of your driver’s license as well as the routing information from your prior bank if you’ll be funding the account through this method.

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Smart Student Saver

This paired account for the Smart Student Checking also comes with a low interest rate.

APY

Minimum Balance Amount

0.05%

$0.01

  • Minimum opening deposit: $100 if opening online, or $10 if opening at a local branch.
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: None
  • ATM fee: No charge for in-network ATMs. $2 at out-of-network ATMs.
  • ATM fee refund: None
  • Overdraft fee: $35 per overdraft charge, up to five items per day (but only if each charge is over $5). Alternatively, you can pay $25 per year to set up an overdraft protection plan from a linked savings account or line of credit.

If you have a Smart Student Checking account, you’re also eligible to open this account. In addition, any interest you earn from your checking account, cash back rewards, and even ATM fee reimbursements will be deposited into this savings account.

When you reach the age of 24, this account will automatically transfer over to a regular Star Savings account, just like how your checking account will transfer into a Star Checking account. Finally, if you exceed six pre-authorized, telephone, or automatic transfers per month with this account, you’ll pay a $10 fee for each additional transaction you make.

How to get Salem Five’s Smart Student Saver account

You can open this account by visiting a local branch if you live in the greater Boston area. You can also open it online (probably the easiest option), or by mail. You’ll need to have a copy of your driver’s license handy, as well as the routing information from your bank if you want to fund your new account with a bank transfer from your old account.

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How Salem Five’s savings accounts compare

Again, Salem Five Bank misses the mark with these accounts. It offers paltry interest rates. We do like the features that come with the Gold Star Saver account for kids, but, you won’t be able to teach them much about how compounding works because the interest rate is so low. Instead, if you’re looking for the highest-yielding accounts available, check out these online savings account recommendations.

Salem Five’s CD rates

Regular CDs

These CDs offer some very low rates and come with high early withdrawal fees.

Term

APY

91-181 days

0.05%

182-364 days

0.05%

12-17 months

0.25%

18-29 months

0.25%

30-41 months

0.35%

42-59 months

0.50%

60 months

0.50%

9 month no-penalty CD

0.05%

  • Minimum opening deposit: $2,500 for regular CD terms of 364 days or less; $500 for regular CD terms of 12-60 months; $10,000 for the 9 month no-penalty CD.
  • Minimum balance amount to earn APY: $2,500 for regular CD terms of 364 days or less; $500 for regular CD terms of 12-60 months; $10,000 for the 9 month no-penalty CD.
  • Early withdrawal penalty: For the CDs with terms of less than 364 days, you’ll pay 2% of the amount you withdraw. For the CDs with terms of 12 to 60 months, you’ll pay 4% of the amount you withdraw. Partial early withdrawals for the 9 month no-penalty CD are not allowed.

The nice thing about these CDs is that you can open them for almost any term length you wish, for up to 60 months. You can also choose to have interest paid to you directly each month, or tacked on to the account once it matures for a grand finale (interest for the 9 month no-penalty CD will be added into your CD account each month, however). That’s about where the niceties end though.

Salem Five does offer a 9 month no-penalty CD, but the “no-penalty” part only applies to a brief period of time: you can close the account without paying any fees for just a lightning-quick six-day period after you open the account. If you close the other non-no-penalty CDs, you can expect to pay a hefty fee of 2-4% of the principal balance that you withdraw. This is much higher than the typical early withdrawal penalty, which is usually just a set number of months’ worth of interest.

Finally, your CDs might automatically renew for different term lengths if you don’t give written instructions to Salem Five on what to do when your CD reaches maturity. (Note: you do get a 10-day grace period to make any changes to the account penalty-free once it renews, however). Here’s what the CDs will renew to, based on your current term length:

  • 91-181 days: renews to a 91 day CD
  • 182-364 days: renews to a 182 day CD
  • 12-17 months: renews to a 12 month CD
  • 18-23 months: renews to a 18 month CD
  • 24-29 months: renews to a 24 month CD
  • 30-35 months: renews to a 30 month CD
  • 36-41 months: renews to a 42 month CD
  • 60 months: renews to a 60 month CD
  • 9 month no-penalty CD: renews to a standard 6 month CD

How to get Salem Five’s Regular CDs

If you decide these accounts are right for you, you can open them online, in person at a branch, or by mailing in an application. Things you’ll need include your driver’s license, your social security number, and the routing number for the bank you’ll be transferring money from (if that’s how you want to fund your new account). In addition, if you opt for the 9 month no-penalty CD, you’ll need to deposit at least $5,000 of new-to-Salem Five money into the account (i.e., you can’t transfer the full $10,000 over from an existing Salem Five account).

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Special CDs

These CDs offer a much better rate compared to Salem Five’s standard CDs, but you’ll need a much larger deposit amount.

Term

APY

12 months

0.50%

13 months

1.75%

18 months

0.50%

24 months

0.50%

30 months

0.75%

36 months

0.75%

48 months

0.75%

60 months

0.75%

  • Minimum opening deposit: $10,000
  • Minimum balance amount to earn APY: $10,000
  • Early withdrawal penalty: 4% of the amount that you withdraw

If you’ve got a spare $10,000 burning a hole in your pocket, these CD accounts offer you the chance to earn some of the highest interest rates that Salem Five offers on any accounts. It’s a good idea to make sure you’re really committed for the long haul before you open these accounts, however, since it doesn’t offer very consumer-friendly policies for people who make early withdrawals.

If you make an early withdrawal, Salem Five will deduct that amount from the principal you’ve originally put in, not the interest you’ve earned. Furthermore, it’ll take a slice of 4% of the amount you withdraw as an early withdrawal penalty fee (typically, banks will just charge you a certain number of months’ worth of interest). To top it off, you can’t drop the balance of the account below $10,000, or you will stop earning interest.

Once your account term is up, you’ll also need to be careful. Your account will automatically renew to a similar-length Regular CD, which offers a much lower interest rate. However, you do get a 10-day grace period to make any changes to the account, so you could withdraw the cash and open a new Special CD to continue earning the high interest rates.

How to get Salem Five’s Special CDs

You can open these accounts online, by mail, or in a local branch. Remember to bring your driver’s license if visiting a branch (or scan it if applying online or by mail), and the routing information from the bank you’ll be transferring the money from if you opt to fund the account via this route.

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Callable CDs

These CDs lock in a marginally-higher interest rate for a short period of time, after which Salem Five can close the account if it chooses.

Term

APY

36/6 month

0.90%

60/12 month

1.30%

  • Minimum opening deposit: $25,000
  • Minimum balance amount to earn APY: $25,000
  • Early withdrawal penalty: 4% of the amount you withdraw

We’re a bit unclear about why you’d want to open this account. If you want a 36-month or a 60-month CD, and you’ve got at least $25,000 (the amount required to open these CDs), you can earn much higher rates for these same term lengths by opening a Special CD instead (these accounts only require a minimum $10,000 deposit anyway).

Instead, these CDs are a bit more complicated. The interest rate quoted above is good for either 6 months (for a 36 month CD), or 12 months (for a 60 month CD). Once that rate-lock period is finished, Salem Five can, if it so chooses, close the account if it doesn’t like the interest rate it’s paying you. If this happens, you’ll get a 15-day notice before it closes the account.

Once these CDs mature, they’ll automatically be renewed for a Standard 12 month CD (for both the 36-month Callable CDs and the 60-month Callable CDs) unless you notify them to do something else with the money.

How to get Salem Five’s Callable CDs

You can open a Callable CD in-person at a local branch, online, or via mail. You’ll need to either bring or scan a copy of your driver’s license, and provide personal information about yourself like your name, social security number, etc. Finally, if you want to open these CDs by a bank transfer from an outside bank, you’ll need to provide the routing number as well.

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How Salem Five’s CD rates compare

We’re also not so much fans of Salem Five’s CD accounts. To start, it generally has non-consumer-friendly early withdrawal policies. Salem Five charges you a portion of the principal you withdraw, rather than a set amount of interest which should generally be a smaller fee overall.

We do like the various term lengths and the number of different types of CDs offered. In addition, while most of these CDs come with low interest rates, a few of them (such as its 36 month Special CD) do offer quite good interest rates. The catch is that for these CDs, you’ll need a very high minimum opening deposit ($10,000) in order to earn it.

Instead, if you’re looking for better-yielding accounts with more consumer-friendly terms, try checking out one of these current top CDs.

Salem Five’s money market account options

Gold Star Money Market

This money market account does offer a good rate, but is only available to people depositing new-to-Salem-Five money into their account.

APY

Minimum Balance Amount

0.10%

$0.01

  • Minimum opening deposit: $100 if opening online, or $10 if opening at a local branch.
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: None
  • ATM fee: No charge for in-network ATMs. $2 at out-of-network ATMs.
  • ATM fee refund: None
  • Overdraft fee: $35 per overdraft charge, up to five items per day (but only if each charge is over $5). Alternatively, you can pay $25 per year to set up an overdraft protection plan from a linked savings account or line of credit.

If a high yield on your money market account is what you’re after, this is definitely one account to consider. Even better, there are no stipulations saying that you need to hold a joint checking account alongside this account. This means that if you wanted, you could open up this account alone at Salem Five and not have to worry about the fuss of maintaining a separate account.

One limitation of this account is that you can’t hold more than $1,000,000 in it. But you likely wouldn’t want to do that anyway, since FDIC insurance only covers $250,000 of your deposit at any one bank. Additionally, this account does not come with the ability to write checks (odd for a money market account, since that’s one of the distinguishing features between a savings and a money market account). You also must deposit “new” funds in the account, so you can’t transfer over money from an existing Salem Five account to take advantage of the good rate offered on this account.

Since this account also follows the rules of federal Regulation D, you’re limited to just six telephone, pre-authorized, or automatic transfers per month with this account. If you go over that limit, you’ll have to pay a $10 fee per transaction.

How to get Salem Five’s Gold Star Money Market account

You can open this account in one of three ways: online, over the phone, or in a local branch.

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Star Money Market

Salem Five’s money market account for existing checking account holders offers a much lower rate.

APY

Minimum Balance Amount

0.02%

Less than $10,000

0.05%

$10,000 - $50,000

0.10%

Over $50,000

  • Minimum opening deposit: $100 if opening online, or $10 if opening at a local branch.
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: None
  • ATM fee: No charge for in-network ATMs. $2 at out-of-network ATMs.
  • ATM fee refund: None
  • Overdraft fee: $35 per overdraft charge, up to five items per day (but only if each charge is over $5). Alternatively, you can pay $25 per year to set up an overdraft protection plan from a linked savings account or line of credit.

If you’ve already got a Gold Star Checking or Star Checking account with Salem Five, this is the money market account you’re eligible to open. Unfortunately, it comes with a much lower interest rate. Currently, you’d only earn more money with this account if you had a deposit amount of more than $50,000 — otherwise, the Star Savings account will earn more.

Additionally, this account also does not come with checks. And if you exceed the six-transaction monthly limit (only applicable to telephone, pre-authorized, or automatic transfers), you’ll pay another $10 “excess debit fee” per each transaction.

How to get Salem Five’s Star Money Market account

If you already have a Star Checking or Gold Star Checking account, you can open this account too. Either head online, to a local branch, or you can also mail in an application.

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Advantage Money Market

The Advantage Money Market account comes with a miniscule advantage in interest rates for big deposits, and has the potential to charge a monthly fee.

APY

Minimum Balance Amount

0.01%

Less than $10,000

0.05%

$10,000 - $100,000

0.10%

Over $100,000

  • Minimum opening deposit: $2,500
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: $15 if your balance falls below $2,500.
  • ATM fee: No charge for in-network ATMs. $2 at out-of-network ATMs.
  • ATM fee refund: None
  • Overdraft fee: $35 per overdraft charge, up to five items per day (but only if each charge is over $5). Alternatively, you can pay $25 per year to set up an overdraft protection plan from a linked savings account or line of credit.

Salem Five’s Advantage Money Market account comes with marginally higher interest rates in the top-tiered bracket compared with its Star Money Market account. That means you’ll need to come to the table with a deposit of at least $100,000 in order to earn just a fraction more.

Furthermore, you’ll need to remember to always keep a balance of at least $2,500 in the account, lest you pay a $15 monthly fee. That means if you ever decide to liquidate the account, you should just go ahead and close the whole thing so you don’t pay the fee.

As with the rest of Salem Five’s savings and money market accounts, you’re limited to just six pre-authorized, telephone, or automatic transfers per month with this account. For each transaction that goes over this limit, you’ll have to pay a $10 “excess debit” fee.

How to get Salem Five’s Advantage Money Market account

You’ll need a few things to open this account. First, you’ll need to provide all the basic personal information like name, address, and social security number. You’ll also need to provide a copy of your driver’s license, and the routing information from your bank (if funding the account with money from your old bank). You can easily do this online, by mail, or by walking into a local branch.

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How Salem Five’s money market accounts compare

Salem Five’s money market accounts are a bit hit-and-miss. Its Gold Star Money Market account does offer a good rate, but there are still a couple gotchas: only new money is eligible, and you can’t write checks with this account, which sort of defeats the purpose of a money market account. As for the rest of its money market accounts, we suggest skipping them for a higher-yielding money market account.

Salem Five’s IRA account options

IRA CD rates

These IRA CDs are available in many more options than at most banks, but they still don’t earn the best rates.

Term

APY

91-181 day Traditional

0.05%

182-364 day Traditional

0.05%

12-17 month Traditional

0.25%

18-29 month Traditional

0.25%

30-41 month Traditional

0.35%

42-59 month Traditional

0.50%

12 month Special

0.50%

13 month Special

1.75%

18 month Special

0.50%

24 month Special

0.50%

30 month Special

0.75%

36 month Special

0.75%

48 month Special

0.75%

60 month Special

0.75%

  • Minimum opening deposit: $500 for Traditional CDs. $2,000 for Special CDs.
  • Minimum balance amount to earn APY: $500 for Traditional CDs. $2,000 for Special CDs.
  • Early withdrawal penalty: For the CDs with terms of less than 364 days, you’ll pay 2% of the amount you withdraw. For the CDs with terms of 12-60 months, you’ll pay 4% of the amount you withdraw.

You have a wide range of options for IRA CDs at Salem Five. Additionally, if you can pony up a higher deposit amount (at least $2,000), you can take advantage of the higher Special CD rates offered.

How your CD is handled once it matures depends on the type of CD you open. Special IRA CDs will be automatically renewed into a Traditional CD for a similar term. For example, a 12-month Special IRA CD will be renewed into a 12 month Traditional IRA CD. For Traditional IRA CDs, it’ll be automatically renewed for one of these terms, depending on what term length you originally picked:

  • 91-181 days: renews to a 91 day CD
  • 182-364 days: renews to a 182 day CD
  • 12-17 months: renews to a 12 month CD
  • 18-23 months: renews to a 18 month CD
  • 24-29 months: renews to a 24 month CD
  • 30-35 months: renews to a 30 month CD
  • 36-41 months: renews to a 36 month CD
  • 42-59 months: renews to a 42 month CD
  • 60 months: renews to a 60 month CD

You also get a 10-day grace period when your CD renews in case you want to make any changes.

How to get Salem Five’s IRA CDs

It’s probably easiest to apply for a new account with Salem Five online. You can also apply for a new account in person or by mail, too. You’ll need to provide your driver’s license, social security number, and the routing number for your current bank if you’re transferring over new money.

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on Salem Five’s secure website

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How Salem Five’s IRA CD rates compare

Salem Five offers lackluster rates on its Traditional IRA CDs. It offers better rates on its Special CDs, however you can still do much better. Check out one of these top IRA CDs currently on the market if earning the most bang for your buck is your top priority.

IRA Money Market account

This account doesn’t earn a very good interest rate, but at least your money is more liquid.

APY

Minimum Balance Amount

0.05%

$500

  • Minimum opening deposit: $500
  • Monthly account maintenance fee: None
  • Overdraft fee: $35 per overdraft charge, up to five items per day (but only if each charge is over $5). Alternatively, you can pay $25 per year to set up an overdraft protection plan from a linked savings account or line of credit.

If you don’t like the idea of locking away your money for a certain amount of time (especially given the high early withdrawal penalties of Salem Five’s IRA CDs), this account will allow you to move your money around penalty-free at any time.

Of course, if you make an early withdrawal from any IRA, you may have to pay government-imposed taxes and fees on the amount you withdraw. But, you are free to move this IRA money around to any other IRA (even non-Salem Five IRAs) at any time.

This account doesn’t offer fancy features or perks. You put your money in, earn a small amount of interest each month, and that’s it.

How to get Salem Five’s IRA Money Market account

You can open this account in a local branch, by mail, or online.

SEE DETAILS Secured

on Salem Five’s secure website

Member FDIC

Overall review of Salem Five’s banking products

Salem Five does have a few good products, such as its Special CDs which offer high interest rates. On the whole, though, most of its accounts come with high fees that you have to actively work to avoid, low interest rates, and high early withdrawal fees for its CDs. If you’re looking for a hassle-free banking experience while earning the best rates for your deposit, you can do much better with another online bank.

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